The partnership that will unlock more financing for women-led and women-owned small and medium-sized enterprises (WSMEs) across Africa./Photo:African Guarantee Fund
The African Guarantee Fund (AGF) has signed a USD 2 million grant agreement with Visa Foundation, a partnership that will unlock more financing for women-led and women-owned small and medium-sized enterprises (WSMEs) across Africa.
The agreement will scale up the African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative, through its Guarantee for Growth program.
AFAWA is designed to tackle systemic barriers that limit women entrepreneurs’ access to capital and create an enabling environment for them to thrive.
Despite their central role in Africa’s economy, women face an estimated USD 49 billion funding gap.
They represent 58% of Africa’s self-employed population and contribute nearly 20% of the continent’s GDP, yet financing remains out of reach for many.
Studies suggest that bridging this gap could unlock as much as USD 15 trillion in economic value for the continent.
A Commitment to Women Entrepreneurs
Speaking during the official signing, AGF Group Chief Executive Officer Jules Ngankam said the partnership marks a turning point in the fund’s mission to unlock financing for African SMEs.
“By focusing on women entrepreneurs, we are not only driving financial inclusion but also catalyzing broader economic and social transformation, as women consistently reinvest in their families and communities,” Ngankam noted.
He added that the grant will do more than provide guarantees:
“With the additional technical assistance support from our Capacity Development program, we will be able to build capacity and expand lending at scale, driving job creation and business resilience across the continent.”
AGF plans to channel the support toward a combination of loan guarantees and technical assistance.
This will allow its Partner Financial Institutions (PFIs) to increase lending to women entrepreneurs while also building the financial management skills needed for businesses to thrive.
The approach is expected to strengthen the resilience of WSMEs and create ripple effects that lead to job creation and local development.
Unlocking Private Capital
The partnership also reflects AGF’s strategy to unlock private capital and strengthen the ecosystem of women-led businesses.
By reducing the perceived risk of lending to women entrepreneurs, PFIs can increase their confidence in offering credit and expand financial services to a segment of the economy that has long been underserved.
Visa Foundation President Graham Macmillan described the collaboration as a natural alignment of missions.
“AGF is a proven leader, dedicated to empowering women entrepreneurs, and we are thrilled to partner with them to scale their AFAWA initiative to support even more entrepreneurs,” he said.
“Their dedication to financial inclusion resonates with Visa Foundation’s mission to ensure entrepreneurs everywhere thrive.”
Progress and Impact
Through AFAWA, AGF has already made significant progress in addressing the gender financing gap.
To date, it has helped unlock nearly USD 1 billion in loans for more than 14,000 women-led or women-owned businesses across Africa.
These businesses have gained not only access to credit but also opportunities to expand operations, create jobs, and contribute to economic growth in their communities.
The new partnership with Visa Foundation is expected to build on this foundation, accelerating momentum toward a more inclusive financial ecosystem in Africa.
By enabling women entrepreneurs to scale their businesses, the initiative directly contributes to Africa’s broader development goals, boosting GDP growth, reducing poverty, and strengthening social resilience.
As AGF and Visa Foundation double down on support for women entrepreneurs, the partnership signals a wider shift in development finance: one that recognizes women not just as beneficiaries, but as critical drivers of Africa’s economic transformation.
About Visa Foundation
Visa Foundation seeks to support inclusive economies where individuals, businesses, and communities can thrive.
Through grantmaking and investing, the Foundation prioritizes the growth of small and micro enterprises, particularly those led by women, and advances equitable access to capital.
Established by Visa Inc., the Foundation works globally to foster financial inclusion and resilience.
About the African Guarantee Fund (AGF)
The African Guarantee Fund is a pan-African non-bank financial institution founded in 2011 to facilitate access to finance for small and medium-sized enterprises (SMEs).
By providing loan guarantees and capacity development assistance to partner financial institutions, AGF works to unlock financing for SMEs that drive innovation, job creation, and economic growth across the continent.
